Options Trading News

Housing stocks fell on yesterday's announcement from the Federal Reserve, and option trading was mostly bearish in the space.

The central bank kept monetary stimulus in place but sounded less worried about an economic slowdown. That caused investors to think it will slow bond purchases, which would push interest rates higher.

KB Home lit up optionMONSTER's Depth Charge tracking system about 20 minutes after the statement was released as traders snapped up more 4,200 Weekly 18 puts expiring tomorrow. Most of the large blocks priced for $0.65, and volume was more than 40 times previous open interest at the strike.

Mexican cement giant Cemex has also tracked the group. It was active late in the session but saw more positive activity. Traders bought the December 11 calls for $0.43 to $0.44 in the afternoon, followed by the sale of 3,400 in-the-money January 2015 12 puts for $2.55. Both transactions will benefit from shares pushing higher. CX fell 3.38 percent to $10.59.

optionMONSTER® provides stock market insight, advanced options education, and actionable trade ideas to meet the needs of do-it-yourself investors. After spending decades in the trading pits of Chicago, Jon 'DRJ' and Pete Najarian founded the company in 2005 to help people better manage their own investment portfolios.